Knock-on effects of DeSantis' war with Disney threaten massive devastation to Florida: analysis

Florida Gov. Ron DeSantis' escalating fight with the Disney corporation could be more devastating for his state than it could be for Disney, reported Business Insider on Tuesday.

" Disney's latest move was to scrap a $1 billion development in Florida. The corporate campus could have brought more than 2,000 jobs to the Sunshine State, but reportssaid Disney's current relationship with Florida was one of several reasons the project was abandoned," reported Kelsey Vlamis.

"The announcement renewed questions about DeSantis' decision to pick a fight with one of the state's largest employers — and who had the most to lose: Florida, the governor, or the company."

The fight began over Disney's criticism of Florida's so-called "Don't Say Gay" law which effectively censored any mention of LGBTQ identity in public schools. DeSantis retaliated by taking over the board of the special district that oversees local services at Disney's resorts, but Disney brokered a deal with the outgoing board at the last minute that transferred much of its power to Disney itself. DeSantis has since threatened to build toll roads or even a state prison in the area as punishment. Disney has sued, alleging that DeSantis' actions are retaliation for political speech in violation of the First Amendment.

For now, Disney still plans to invest $17 billion in the state over the next decade, according to the report — but if the fight escalates and that investment is cut back, it could be devastating for Florida.

The problem for DeSantis is that Disney is a huge driver of tourism for Florida — it's the sole reason many families even travel to the state — and one of the largest single employers.

"A study by Oxford Economics said that Orlando tourism generated $75.2 billion for central Florida in 2018. While that includes other attractions, Disney dominates the area's tourism with four theme parks and two water parks," said the report.

"The study also said Orlando tourism accounted for nearly half a million jobs, bringing in $5.8 billion in state and local tax revenue for public safety, infrastructure, schools, and more. Disney said it employed 75,000 people in Florida — which made it the state's second-largest private employer behind the Publix grocery-store chain, according to the Florida Department of Economic Opportunity."

And visitors to Walt Disney World in Florida provide knock-on effects by often visiting other tourist destinations like Universal and SeaWorld, who would similarly lose business.

Disney, by contrast, would lose business by reducing its investment in Florida, but would still have resorts and theme parks elsewhere around the world, including the original Disneyland in Anaheim, California, plus its cruise line — as well as its entertainment and production empire.

Richard Foglesong, an expert on Disney's operations in Florida, put it simply to Insider: "I think DeSantis has more to lose, as this incident made apparent, depending on whether, as a fairly skilled politician, he can somehow put a good face on this."